Billerud's 1Q operating loss decreased by SEK 128 million ($15.5 million)

Apr 28, 2009. /Lesprom Network/. Billerud reports an operating result for the 1Q of SEK -37 million ($4.4 million), compared to SEK 214 million ($26 million) the same period last year. However, the operating result improved from SEK -165 million ($20 million) last quarter 2008, as the Papernet informed Lesprom Network. Billerud's net turnover increased by 11% compared to the 4Q 2008, but decreased by 9% compared to the 1Q 2008. The operating loss decreased by SEK 128 million ($15.5 million) from the last querter 2008, from SEK -165 ($20 million) to SEK -37 million ($4.4 million). An improved order situation increased delivered volumes by 12%, compared to the 4Q 2008. Billerud's net result was SEK -39 million ($4.7 million), SEK 130 million ($15.7 million) 1Q 2008. Billerud's CEO Per Lindberg comments: "Despite making a loss and the continued difficult market situation with major uncertainty about the future, we were pleased with some bright spots in the 1Q. An improved order situation and the launch of new products meant that market-related production stops, like the ones carried out in the 4Q 2008, have not been necessary, and this meant that our sales volumes could increase by 12%. Falling wood prices and our own cost savings meant that both fixed and volume-adjusted variable costs were lower than the previous quarter." "We have also reduced our financial risk going forward by refinancing and extending our syndicated loan," Lindberg says. Cost savings are continuing according to plan and are expected to amount to at least SEK 250 million ($30 million) annually by the end of 2009, while investment levels will be reduced to half during 2009, Billerud writes in the interim report.